The cover story, titled ‘Time horizons’, focused on the intended period of investment being equally as important as the return, something that very much forms part of today’s holistic financial planning approach. The consideration around short, medium and long-term investment strategies was tackled, as well as some sound advice on how higher-rate taxpayers could avoid unnecessary tax on endowments. The role of the adviser is arguably more important than ever with exorbitant university costs, rising house prices and longer life expectancy.
Although investment trusts and unit trusts are now the most popular equity-based vehicle, investment bonds still remain a strong consideration - especially for higher-rate taxpayers who will drop to basic rate in the future. The unusual tax situation of investment bonds was covered such as implication with chargeable events through to the complex calculation of top-slicing. Of greater alarm is the top rate of tax on investment income in 1977.... 98 per cent (83 per cent higher-rate income tax topped up with an investment income surcharge). Careful tax planning was clearly essential.
Insurance rates and sums insured certainly raise a few eyebrows. A mortgage protection policy could be effected for as little as £10.88 per annum. Albeit, this would only secure you £10,000 worth of cover, which was sufficient for a house purchase, but would generally be insufficient for a deposit in 2016.
Investing in theatrical productions was explored under the headline ‘How to be an Angel’. Apparently it was said to fall ‘somewhere halfway between investment and gambling’. Theatre investments had apparently yielded great success for many speculators, in some cases far higher than more conventional assets.
It just goes to show that the history of investment advice and opportunity carries a continual theme - regulation, risk, objectives and tax will always evolve, but regardless, the show must go on.
In other news…..
‘I don’t want to talk about it’ by Rod Stewart was number one for four weeks
Prime minister James Callaghan announced Britain would join the USA and Russia in talks on a comprehensive ban on nuclear bomb tests.
And Martin Scorcese’s ‘New York, New York’starring Liza Minelli and Robert De Niro was released.
More ‘Back in the Day’...
